The iron ore pellets market is expected to showcase significant growth by 2027 primarily driven by the rising product prominence in steel making processes. Moreover, surging demand for high-grade iron ore products in the steel industry is likely to further bolster market growth through the forecast timeframe.

Additionally, in recent years, with increasing climate consciousness, manufacturers have been focusing on making operations more sustainable. Subsequently, surging emphasis on establishing a circular economy has pushed industry players to reevaluate raw material sourcing and other aspects of production, which has positively influenced industry expansion across the globe.

For comprehensive assessment, the iron ore pellets market has been segmented on the basis of application, grade, balling technology, pelletizing process, steelmaking technology, product source, and region. With respect to balling technology, the market has been divided into balling drum and balling disc.

The balling drum sub-segment is expected to witness steady growth at over 2.5% CAGR through the projected timeframe. The technology is extensively applied in the production of uniform sized pellets ranging from 8 mm to 16 mm in diameter, which is likely to contribute to market growth over 2021-2027.

From the application perspective, the market has been categorized into steel production and iron based chemicals. The iron based chemicals sub-segment is estimated to hold the lowest share in the overall market revenue owing to reduced product penetration. However, growing usage of iron based chemicals in water treatment industry is anticipated to drive product demand in the coming years.

In terms of steelmaking technology, the iron ore pellets market has been segregated into electric induction furnace, electric arc furnace, and oxygen based/blast furnace. The electric induction furnace (EIF) sub-segment is calculated to expand at a CAGR of around 4.5% over the forecast time period. Superior energy efficiency of EIF technology is set to propel segmental growth through the following years.

By product source, the iron ore pellets market has been bifurcated into magnetite, hematite, and others. The magnetite sub-segment is expected to account for a substantial share of the overall market by 2027, progressing at a robust CAGR over the projected timeline. Mounting demand for high-grade steel across various end-user industries is speculated to fuel segmental adoption in the future.

Based on pelletizing process, the market has been segmented into grate kiln, travelling grate, and others. The grate kiln sub-segment is anticipated to account for over 20% of the iron ore pellets market by the end of 2027, expanding at a sizable pace through the forecast period. The significantly improved and uniform temperature profile of the process is likely to support segmental growth over 2021-2027.

In the regional landscape, the Latin America iron ore pellets market is estimated to exhibit steady growth, progressing at a notable pace through 2027. Increasing number of iron & steel manufacturing facilities in the region is expected to boost regional market growth over the projected period.